Polygon Foundation Addresses Spark Controversy with 10.6 Million MATIC Deposits into Binance

By 0xGorki 09/7/23 11:55 AM

In a recent turn of events within the cryptocurrency world, two wallet addresses, both seemingly associated with the Polygon Foundation, have attracted significant attention by depositing a staggering 10.6 million MATIC tokens into the Binance exchange over the past month. While this substantial activity has inevitably sparked concerns and speculation about potential token sales, Polygon’s CEO, Marc Boiron, has categorically denied any connection between the foundation and these transactions.

Data compiled by the crypto intelligence firm Lookonchain reveals that one of the addresses, labeled as Polygon Foundation with the code 0x8d36, made substantial deposits amounting to 6 million MATIC tokens, equivalent to approximately $3.35 million, within the last two days. Another wallet, identified as 0xf957 and attributed to the Polygon Foundation, transferred 4.6 million MATIC tokens, valued at about $2.57 million, to Binance over the course of the previous 30 days.

You have incorrectly labelled this wallet. It is not a Polygon Foundation wallet.

— Marc Boiron (@0xMarcB) September 7, 2023

These transactions, along with the apparent involvement of addresses linked to the Polygon Foundation, immediately raised suspicions within the crypto community regarding potential token sales or other undisclosed activities. However, Polygon’s CEO, Marc Boiron, swiftly addressed these concerns and refuted any allegations of the foundation’s involvement in selling MATIC tokens. Boiron took to Twitter, responding to a post by Lookonchain, stating, “You have incorrectly labelled this wallet. It is not a Polygon Foundation wallet.”

This assertion by Boiron led to further investigation into the accuracy of the wallet labeling. Lookonchain clarified that the categorization of the wallet addresses as “Polygon Foundation” was derived from Nansen, a renowned on-chain data analysis tool. Nansen maintains a comprehensive data warehouse containing millions of labeled wallets, categorizing them based on various characteristics, including profit generation from NFTs, participation in airdrops, or affiliation with crypto organizations.

However, Polygon’s founder, Sandeep Nailwal, has weighed in on the matter as well. Nailwal cautioned against hasty labeling, emphasizing the importance of careful consideration to avoid unnecessary fear, uncertainty, and doubt (FUD) within the cryptocurrency community. This incident marks the second instance in which Polygon has been wrongly tagged in such a manner.